ITR: Are you also making this mistake while filing your ITR? Learn 6 easy ways to save tax before July 31..

If you haven't filed your Income Tax Return (ITR) yet, time is running out. The July 31 deadline is fast approaching; in the rush to file, many people forget to claim essential tax-saving deductions. This directly impacts their finances, potentially leading to a higher tax liability than necessary.

If you have opted for the Old Tax Regime, make sure to familiarize yourself with these six crucial deductions before filing your ITR. Claiming them correctly can result in significant tax savings.

**Deductions of up to ₹1.5 lakh available on investments like PPF, EPF, and LIC**
Section 80C is the most widely used provision for tax savings. Under this section, you can claim a deduction of up to ₹1.5 lakh on specific investments and expenses, such as PPF, EPF, ELSS, tax-saving FDs, NSC, Sukanya Samriddhi Yojana, LIC premiums, children's tuition fees, and the principal repayment of home loans. This benefit is available only to taxpayers who choose the Old Tax Regime. If you have made such investments, do not forget to claim them in your ITR.

**Additional benefit of ₹50,000 for NPS investors**
If you have invested in the National Pension System (NPS), you can claim an additional tax deduction of up to ₹50,000 under Section 80CCD(1B), over and above the Section 80C limit. This provides an extra opportunity to save tax beyond the ₹1.5 lakh limit of Section 80C. Investors often overlook claiming this additional deduction.

**Health insurance premiums can also lower your tax liability**
If you have purchased health insurance for yourself, your spouse, children, or parents, you can claim a tax deduction on the premiums paid under Section 80D. Depending on the rules, this deduction can range from ₹25,000 to ₹1 lakh. Notably, the exemption limit is higher for senior citizens.

**Deduction of up to ₹2 lakh on home loan interest**
If you hold a home loan in your name, you can claim a tax deduction of up to ₹2 lakh on the interest paid under Section 24(b). Keep in mind that this relief applies only to the interest component; the benefit for the principal amount of the home loan is claimed separately under Section 80C.

**Full tax relief on education loan interest**
An education loan taken for higher studies can also help save tax. Under Section 80E, a deduction is available on the entire interest paid on the loan. There is no upper monetary limit specified under this section. However, this exemption applies only to the interest, not the principal component of the EMI.

**Don't forget to claim tax benefits for donations**
If you have made a donation to a government-recognized institution, trust, or relief fund, you can claim a tax exemption under Section 80G. Depending on the institution's rules, you may avail a deduction of 50% or 100%. When filing your ITR, it is crucial to accurately enter details such as the donation receipt and the institution's registration number.

**Check these 5 things before filing your ITR**
Verifying certain key details is essential before submitting your ITR.

First, ensure you cross-check Form 16, AIS, and Form 26AS to ensure your income and tax details are accurate.

Keep all documents and receipts related to the deductions you are claiming handy.

Additionally, compare the Old and New Tax Regimes and choose the option that offers you the greater benefit.

Fill in your bank account details and other information carefully in the ITR.

Finally, do not forget to complete e-Verification after filing your return, as the ITR process is considered incomplete without it. If this is not done on time, your return will not be considered valid, and any potential refund could be delayed.

Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.